International Business Machines (IBM)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 5,805,000 | 8,678,000 | 1,013,000 | 5,867,000 | 4,230,000 |
| Revenue | US$ in thousands | 62,753,000 | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 |
| Pretax margin | 9.25% | 14.03% | 1.67% | 10.23% | 7.67% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $5,805,000K ÷ $62,753,000K
= 9.25%
The pretax margin of International Business Machines (IBM) has shown fluctuations over the past five years. In December 31, 2020, the pretax margin stood at 7.67%, indicating that for every dollar of revenue generated, IBM's earnings before tax were 7.67 cents.
In December 31, 2021, the pretax margin improved to 10.23%, reflecting stronger profitability compared to the previous year. However, in December 31, 2022, the pretax margin dropped significantly to 1.67%, signaling a decline in profitability.
By December 31, 2023, the pretax margin rebounded impressively to 14.03%, reaching its highest level in the five-year period. This indicates that IBM effectively managed its operating expenses and improved its efficiency in generating profits.
In the most recent year, December 31, 2024, the pretax margin slightly decreased to 9.25%. While lower than the previous year's peak, this figure still demonstrates that IBM continues to generate healthy profits before tax.
Overall, IBM's pretax margin has shown variability over the years, with fluctuations reflecting changes in the company's operational efficiency and profitability. It is essential for investors and stakeholders to monitor these trends closely to assess IBM's financial performance and strategic direction.
Peer comparison
Dec 31, 2024